Qualcomm (QCOM) Offering Possible 25.94% Return Over the Next 24 Calendar Days

Qualcomm's most recent trend suggests a bullish bias. One trading opportunity on Qualcomm is a Bull Put Spread using a strike $72.50 short put and a strike $67.50 long put offers a potential 25.94% return on risk over the next 24 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $72.50 by expiration. The full premium credit of $1.03 would be kept by the premium seller. The risk of $3.97 would be incurred if the stock dropped below the $67.50 long put strike price.

The 5-day moving average is moving up which suggests that the short-term momentum for Qualcomm is bullish and the probability of a rise in share price is higher if the stock starts trending.

The 20-day moving average is moving up which suggests that the medium-term momentum for Qualcomm is bullish.

The RSI indicator is at 66.29 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here

LATEST NEWS for Qualcomm

Goldman Turns Bearish On Apple, Qualcomm, Projects 36% Drop In Q2 iPhone Sales
Fri, 17 Apr 2020 16:17:34 +0000
Apple Inc. (NASDAQ: AAPL) traded lower Friday after one Wall Street analyst downgraded the stock and said COVID-19 will take a bigger bite out of global smartphone demand than investors realize.The Apple Analyst Goldman Sachs analyst Rod Hall downgraded Apple from Neutral to Sell and cut the price target from $250 to $233.Hall also downgraded QUALCOMM, Inc. (NASDAQ: QCOM) from Neutral to Sell and cut the target from $77 to $61.The Apple Thesis The downgrade comes after Goldman cut its forecast for 2020 iPhone demand for the third time.Hall said he's now forecasting a slower recovery in smartphone sales in 2021 as low consumer confidence reduces smartphone replacement rates. (See his track record here.) In addition to his more cautious outlook for iPhone sales, the analyst said he is projecting Apple's Services segment revenue growth will slow sigificantly in 2021 and Services revenue as a percentage of total revenue will stagnate."We also assume some lingering ASP weakness as consumers look to economize similar to what we have seen in prior downturns." Hall cut his 2021 EPS estimate by 12% to $13.17 and is forecasting just $11.31 in EPS this year.In the near-term, Hall is calling for second-quarter iPhone unit sales to drop 36%.He also said slumping smartphone demand will negatively impact Apple supplier Qualcomm as well. Goldman cut its 2021 Qualcomm EPS estimate by 10% to $5.04, which is 16% below consensus analyst estimates.AAPL, QCOM Price Action Apple shares were down 2.34% at $279.98 at the time of publication Friday, while Qualcomm shares were down 1.24% at $75.90. Benzinga's Take Apple is not immune to the negative impact of the coronavirus. Like many other companies, the keys for investors are just how bad things will get in the near-term and how long it takes to fully recover.Do you agree with this take? Email feedback@benzinga.com with your thoughts.Related Links:Apple Ready To Launch 'iPhone 9'; Analyst Says Initial Sales Could Reach 25M Units Here's How Much Investing 0 In Apple Stock Back In 2010 Would Be Worth TodayPhoto courtesy of Apple. Latest Ratings for AAPL DateFirmActionFromTo Apr 2020Goldman SachsDowngradesNeutralSell Apr 2020Deutsche BankMaintainsBuy Apr 2020Raymond JamesMaintainsOutperform View More Analyst Ratings for AAPL View the Latest Analyst Ratings See more from Benzinga * 8 Best Investment Strategies During A Recession * Tesla, Wayfair And Other Profitable Short Trades Could Get A Short Covering Boost * Here's How Large Option Traders Are Playing High-Yield AT&T As Market Falls(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Qualcomm Shares Cut to Sell at Goldman on Chip-Demand Concern
Fri, 17 Apr 2020 15:56:00 +0000
Goldman analysts downgrade Qualcomm's shares to sell, expressing concern about demand for chips from smartphone makers due to the coronavirus pandemic.

Nutanix stock gets a double downgrade at Goldman Sachs
Fri, 17 Apr 2020 15:31:00 +0000
Shares of Nutanix Inc. are off 1.4% in Friday trading after Goldman Sachs analyst Rod Hall lowered his rating on the stock by two notches, to sell from buy. "While we continue to believe Nutanix has a solid technology offering, we are increasingly concerned about its ability to return to revenue growth while reducing opex/sales to maintain adequate cash on the balance sheet," he wrote. Hall worries about Nutanix's free-cash burn as well as revenue pressures if medium-sized businesses start pulling back. He lowered his price target to $15 from $47 in conjunction with the downgrade. Hall also double downgraded Sonos Inc. shares and downgraded Apple Inc. [S: AAPL] and Qualcomm Inc. shares by a single notch. Nutanix shares have lost 51% over the past three months while the S&P 500 has declined 15%.

Chip ETFs May Shine in Q1 Earnings
Fri, 17 Apr 2020 15:15:03 +0000
The stay-at-home and social distancing policies to contain the spread have raised the demand for data center and gaming.

Qualcomm Stock Recovering From Covid-19
Fri, 17 Apr 2020 14:55:27 +0000
Qualcomm (NASDAQ:QCOM) is making a rapid recovery from the economic ravages of Covid-19. Things are looking up for Qualcomm stock.Source: nikkimeel / Shutterstock.com While shares remain well below their January peak of $95, they opened for trade April 17 at nearly $77. That's up from a March 22 low of about $61. The market cap is back up to nearly $88 billion, on trailing-year revenue of $24.5 billion. The price to earnings ratio is back up to almost 22.But it's not too late for you to get in. Qualcomm's 62 cent per share dividend, supported by ample cash and earnings, yielded 3.26%. While other companies were eliminating their dividends, Qualcomm has recently raised its payout 5%.InvestorPlace – Stock Market News, Stock Advice & Trading Tips * 9 Asian Stocks to Buy for a Post-Coronavirus Recovery As the economy continues to recover today's Qualcomm stock may look like a great bargain.Or will it? Phones Still WorkQualcomm specializes in communication chips for phones. It dominates the market thanks to an extensive patent portfolio, which it has defended in courts around the world. It has used this dominance to gain a leading position in other mobile phone silicon with its Snapdragon chips.Qualcomm won 36% of the smartphone Application Processor market last year. When such processors included Artificial Intelligence (AI) support, a market that grew 45%, Qualcomm's share rose to 51%.While the roll-out of 5G services has been delayed by the virus, it's still moving ahead. The 5G wave will bring intelligence to everything from traffic lights to heart monitors.Vast new swaths of frequency will be used for Internet-based applications, in both higher and lower frequency bands. Qualcomm is going to get a big share of that money. Qualcomm has already released code support for the silicon it intends to sell. The Threat of the Clouds to Qualcomm StockAs our Ian Bezek wrote recently, Qualcomm stock was hurt during the quarter by the collapse of OneWeb, one of three satellite Internet competitors. It lost out to Tesla (NASDAQ:TSLA) founder Elon Musk's SpaceX and Amazon (NASDAQ:AMZN) founder Jeff Bezos' Blue Origin, which are still moving ahead.That's not the only threat coming from better-heeled competitors. Qualcomm's aggressive defense of its patents, linking purchase of its rights with purchases of its silicon, has created enormous resentment in the clouds. The Cloud Czars, with their $1 trillion plus market caps, are determined to reduce their dependence on Qualcomm.Apple (NASDAQ:AAPL) is already moving toward building its own chips for the iPhone. Now Alphabet (NASDAQ:GOOGL) has signaled it will do the same, developing chips for its Pixel phones to be made by Samsung Electronics (OTCMKTS:SSNLF) next year.Fortunately Microsoft (NASDAQ:MSFT), now the largest of the Czars by market cap, remains a Qualcomm ally. The two companies were already re-imagining offices when the virus hit.Microsoft calls what it's doing Digital Transformation, combining mobility and mixed reality, delivering artificial intelligence to the edge of networks. This is putting Qualcomm chips inside new kinds of devices like mixed reality headsets. These now look more like sunglasses than the clunky things Facebook (NASDAQ:FB) drew jeers for five years ago. They also have business uses cases, like bringing instructions inside a worker's frame of vision.Qualcomm also has a Chinese card up its sleeve. Having won rights to the China market, it is now working with companies there on things like smart displays. These should keep it on the cutting edge of computing through the decade. The Bottom Line on Qualcomm StockDespite its market cap of $88 billion, Qualcomm is less than one-tenth the size of the companies that now dominate technology.But there is plenty of money in 5G and the Machine Internet for Qualcomm to prosper. The fact that Qualcomm remains committed to its dividend should also keep it a favorite among income investors.Dana Blankenhorn has been a financial and technology journalist since 1978. His latest book is Technology's Big Bang: Yesterday, Today and Tomorrow with Moore's Law, essays on technology available at the Amazon Kindle store. Write him at danablankenhorn@gmail.com or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN, MSFT, FB, QCOM and AAPL. More From InvestorPlace * America's 1 Stock Picker Reveals Next 1,000% Winner * 25 Stocks You Should Sell Immediately * 1 Under-the-Radar 5G Stock to Buy Now * The 1 Stock All Retirees Must Own The post Qualcomm Stock Recovering From Covid-19 appeared first on InvestorPlace.

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